Emergency Loans

What are Emergency Loans?

Emergency loans help community members who have suffered from an unforeseeable emergency by extending a small interest-free loan. Petitions for loans are placed before the Hall, and ultimately the Board, for approval before a loan is granted. Often, recipients of loans are asked to complete an extra service contribution for the community in lieu of charging interest.

Who qualifies?

Any member in good standing qualifies for emergency loans. Having an outstanding loan qualifies a member as not in good standing, making that member ineligible for additional loans and unable to attend official events.

How does a member receive an Emergency Loan?

Any eligible member may apply for an emergency loan by sending an email to the Director of Philanthropy. Since this is a loan that must be paid back, only the recipient can apply for a loan; others cannot apply on the recipient's behalf. The Director of Philanthropy will then review the application to see if it meets criteria, namely that the applicant is a community member in good standing and that the member has indeed suffered from an unforeseeable emergency. If the application meets the criteria, the Director of Philanthropy then puts the application forward in the Hall, who votes on whether to recommend to the Board of Directors that the offer of an emergency loan be extended. The Director of Philanthropy will continue communication with the applicant to gather additional information by request of the Hall, if necessary. If there is a 75% positive consensus to recommend, then the Director of Philanthropy sends the application and the Hall's recommendation to the Board of Directors. The Board of Directors then decides whether or not to extend the loan. If the decision is positive, the Board of Directors determines the terms of the loan; these terms take into account the amount of the loan and the ability of the community member to pay back the loan.

Who decides whether or not to grant an Emergency Loan?

The decision is made by a combination of the Hall and the Board of Directors. The Hall first reviews the loan. If the Hall denies the loan, then it will not be granted. If the Hall decides to recommend the loan to the Board of Directors, the Board will then deliberate. It is the ultimate decision of the Board whether or not to grant a loan, and the terms of the loan if granted.

What does the Hall look for in recommending Emergency Loans?

The Hall is primarily concerned with three issues when determining whether or not to recommend a loan. First, they look at whether or not the applicant is an established member in good standing. Frequent membership issues, a very recent join date, or severely limited activity in the community can reflect poorly on an applicant. Second, they look at whether or not the applicant has exhausted other avenues for assistance. TarValon.Net, Inc. should be used as a last resort for monetary assistance, after exhausting savings and seeking government aid, help from family/friends, etc. Third, they judge if the situation is indeed an unforeseeable emergency. It must be considered both unforeseeable, in that the applicant had no way of preparing or planning for this expense, and an emergency, in that if the applicant is not able to find enough money the consequences may be severe.

What does the Board look for in granting Emergency Loans?

When the Hall recommends a loan applicant to the Board, the application is forwarded along with comments, both for and against the loan, from the Hall. The Board reads these comments and judges whether or not the Hall's reasoning is sound on the above factors. In addition, the Board discusses financial issues with the applicant to see how quickly the applicant will be able to repay a loan, how large a loan the applicant will be able to repay, and to judge the reliability of the applicant's source for getting money with which to repay the loan. The Board, along with the Chief Financial Officer, will also determine whether or not the community can afford to offer a loan out to a member at the time of the request, and if so, how much can be offered without overextending the community funds.

If the Board agrees with the Hall's recommendation, is convinced that the applicant will be able to pay the full loan amount back in a timely fashion, and determines that the community can afford to extend a loan, then the applicant will be offered a loan based on terms the Board sets.

Why might an Emergency Loan request be denied?

There are many reasons a loan may be denied. The Hall or Board may decide that the applicant is not a contributing member of the community, or that the situation does not warrant a loan. It is also possible that, though a loan request is otherwise approved, the community cannot afford to give out money at the time of the request, possibly because other loans have already been extended and are awaiting repayment.

Members whose requests for emergency loans have been denied may instead be eligible for Helping Hands.

How long will it take for an Emergency Loan request to be granted?

Because this process has a series of checks and balances, it is not a fast one. Applicants that are granted loans can expect to hear confirmation within 3 weeks from the time the initial request is submitted. It may take longer if the situation which warrants the request is not clearly an unforeseeable emergency, or if more information is needed from the applicant after the initial request is received by the Director of Philanthropy.

Is it possible to shorten the time it takes to hear a response if the emergency is immediate?

If money is required in less than a month, then the applicant should indicate that in the request to the Director of Philanthropy. The Director of Philanthropy will look at the request based on the deadline given, and if the request for a rushed decision is legitimate, will put the request before the Hall with a short deadline for Hall members to vote. If the vote is 75% positive in the votes received, instead of in the total number of Hall members, then the request will go to the Board. The Board will look at the petition more closely, knowing that the Hall was not able to fully deliberate as they normally would. Applicants can expect this process to take 10 days.

How is money for Emergency Loans distributed?

Money can be given via check or paypal, to be determined by the recipient. If the recipient decides to receive money via paypal, then the recipient will pay for any paypal transaction fees out of the loan given.

What are examples of Emergency Loans?

Examples of members who have received emergency loans include members who required unexpected surgeries, had to travel due to sudden illness/death in the immediate family, and suffered unexpected losses due to natural disasters.

Questions on Emergency Loans and our other Philanthropy activities can be sent to our Director of Philanthropy.